Business Daily from THE HINDU group of publications
Friday, Jan 23, 2009
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Business Daily from THE HINDU group of publications Friday, Jan 23, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Markets
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People Corporate - Corporate Governance 
Mr M. Damodaran Our Bureau Mumbai, Jan. 22 The quarterly reporting of the financial accounts by the listed companies triggered financial re-engineering of the accounts in order to show profit quarter after quarter said former SEBI Chairman, Mr M. Damodaran. Mr Damodaran questioned the mindless import of practices adopted by developed countries such as the quarter on quarter reporting of the accounts copied from the United States, while in the UK still the accounts were reported half yearly. In a 90-day cycle, the CEOs and CFOs are left only with 70 days to run their companies profitably, which results in financial re-enginering, said Mr Damodaran while delivering the 42nd A D Shroff Memorial Lecture here. “Let us not do what appeals to the analysts, most of India is not concerned about what happens on quarter on quarter basis, they are long-term investors,” said Mr Damodaran adding, “Let not the articulate minority that lives in the urban centres and the metropolis only drive the change.” Circumstances should be created in which ordinary men and women can invest in the market with reasonable risk and expect a reasonable return, he said.
By creating exotic products you are creating the market for few people, he said. Mr Damodaran also cited one common reporting platform for corporate as an example of simplification that would provide investors information at one place as well as would be low on cost for the companies. It is learnt that stock exchanges were close to operationalising the common reporting platform and only the last mile hitches are now being sorted out. More Stories on : People | Corporate Governance | Financial Performance
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